Australian Greenback (AUD) is prone to commerce in a sideways vary of 0.6400/0.6450 vs US Greenback (USD). Within the longer run, outlook is combined; AUD is prone to commerce in a variety between 0.6370 and 0.6480, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
Outlook for AUD is combined
24-HOUR VIEW: “Our view for AUD to ‘proceed to rise’ yesterday was incorrect. As a substitute of rising, AUD plummeted to 0.6392, rebounding to shut decrease by 0.53% at 0.6424. Regardless of the drop, there was no vital improve in downward momentum. As a substitute of declining additional, AUD is extra prone to commerce in a sideways vary of 0.6400/0.6450 at this time.”
1-3 WEEKS VIEW: “Final Wednesday (14 Could), when AUD was at 0.6470, we indicated that ‘To proceed to rise, AUD should break and maintain above 0.6515.’ Following the advance in AUD on Monday, we highlighted yesterday, Tuesday (20 Could, spot at 0.6450), that ‘The renewed upward momentum has elevated the chances of AUD breaking above 0.6515.’ Nonetheless, AUD subsequently fell beneath our ‘robust assist’ degree of 0.6400 (low of 0.6392), indicating that the possibility of an advance has dissipated. The latest uneven worth motion has resulted in a combined outlook. In the intervening time, we count on AUD to commerce in a variety between 0.6370 and 0.6480.”
